A number of other clubs were also tracking the 27-year-old, so he may yet leave Edgeley Park after previously turning down a new contract with them.
There's a chance City will return to try and sign the former Chesterfield player in the summer when he's out of contract, but won't negotiate with Stockport to revive the deal before then.
Tigers chairman Adam Pearson told the Hull Daily Mail: "It's a shame because the boy was desperately keen to come here and at one stage it looked like everything had been sorted out.
"However, one or two problems arose and we could not reach an agreement with Stockport and in the circumstances, it's not in our best interests to continue."